The Senate’s passage of the GENIUS Act signals a move toward clearer regulation, aiming to protect consumers and curb illicit activities within the stablecoin market.
The latest blog by blockchain intelligence platform TRM Labs reveals that stablecoins represent more than 60% of all cryptocurrency transaction volume, a sharp rise from just 35% two years ago.
This growth comes despite the absence of a clear federal regulatory framework. However, with the Senate’s passage of the Genius Act yesterday, the sector could soon gain the much-needed regulatory clarity it has been awaiting.
According to the blog, in Q1 2025 alone, stablecoins accounted for 28% of total crypto transaction volume. Moreover, TRM highlighted that top stablecoins consistently comprised at least 4% of the cryptocurrency market capitalization throughout 2024 and 2025.
“TRM data shows that stablecoins have become a core feature of digital asset markets — not just for trading, but for payments, remittances, and savings as well,” the blog read.
Notably, the US dollar-pegged stablecoins are the leading choice for many users in the cryptocurrency sector. In fact, more than 90% of the fiat-backed stablecoins in circulation are linked to the US dollar.
The adoption of these stablecoins is growing in regions like Latin America, sub-Saharan Africa, and Southeast Asia. Individuals and businesses turn to these assets as alternatives to traditional financial systems. Moreover, they also offer a more dependable means to access US dollars and facilitate quicker cross-border transactions.
TRM also emphasized that in 2024, 99% of stablecoin activity was lawful. These tokens facilitated various legitimate use cases, including payments, decentralized finance (DeFi), digital commerce, and cross-border remittances.
However, the blockchain intelligence platform noted that stablecoins’ speed, liquidity, and stability have made them a preferred tool for illicit activities, accounting for 60% of illicit crypto transaction volume in Q1 2025.
Misuses include ransomware payments, terrorist financing, romance and investment scams, sanctions evasion, over-the-counter fraud, and large-scale money laundering. Despite growing interest in privacy coins like Monero, stablecoins remain the asset of choice for many bad actors.
The GENIUS Act represents a crucial step in tackling these challenges. The legislation seeks to establish a federal framework for stablecoin regulation, focusing on consumer protection, market stability, and US leadership in digital finance. It includes several provisions aimed at curbing the illegal use of these assets.
BeInCrypto reported yesterday that the bill passed a Senate Vote with strong bipartisan support, marking a substantial milestone for the legislation.
“The Senate’s passing of the GENIUS Act is a momentous step in the right direction for the country. Stablecoin regulation will benefit all Americans as it serves as the cornerstone for not just blockchain innovation but financial autonomy. This bill proves that there’s an overwhelming bipartisan majority that understands the massive potential stablecoins can bring,” Veronica McGregor, Chief Legal Officer of Exodus, told BeInCrypto.
She also commended the Senate for its determination to pass the bill with bipartisan support. Now, the GENIUS Act will proceed to the House of Representatives. McGregor expressed anticipation for the legislative momentum to carry over there as well.
